How to Incorporate a Company in Turkey?
The company’s incorporation in Turkey takes one to three weeks. Following are the requirements of this multi-stage process:
- Notarized translated passport copy.
- A copy of the Residence Permit, if any.
- Two passport photographs.
- Defining company name and activities.
- Office lease contract.
- Company tax number.
- Company advertisement in the official gazette.
- Obtaining a notarized signature certificate.
- Memorandum of Association from the Chamber of Commerce.
- Company stamp
- “Activities Letter” from Chamber of Commerce.
Common Types of Business Establishments in Turkey
A Limited Company is established with at least one persons or legal entities. The liability of the shareholders is limited with the share capital.
Joint Stock Company
A Joint Stock Company is a limited company that can issue stock certificates and is established with a minimum of one shareholder or legal entity. The company’s stock capital is divided into shares, and the liability of the shareholders is limited with the share capital. A general assembly, board of directors and supervisory board are requirements.
Foreign companies can establish a branch in Turkey. Branches are established according to the provisions of the Turkish Commercial Code with the approval from the Ministry of Industry and Trade.
Representative offices of foreign companies are not permitted to perform any commercial activity in Turkey. Their activities are limited to representation of a foreign company in Turkey and providing information. Expenses of the representative office must be financed by the head office abroad.
The representative office may not generate any income from its activities in Turkey, just as it is not itself subject to corporate income tax or personal income tax. However, it should maintain statutory books and provide any necessary information to the authorities when required. Employees of a representative office are not subject to income tax either, provided that their salaries are paid from abroad in foreign currency.
Companies based abroad can open liaison offices in Turkey providing that commercial activities are not carried out through them.
By choosing to incorporate an offshore company, business owners and investors can set-up a business outside the jurisdiction of its operations. Offshore companies are traditionally, but not exclusively, incorporated for lower fees and taxes. Business owners must abide the regulations of the offshore jurisdiction and must not trade within the jurisdiction.